Budget Implications of Savings Reported in the Third Summary Report Issued by the President's Council on Integrity and Efficiency

AFMD-83-14: Published: Oct 18, 1982. Publicly Released: Oct 20, 1982.

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Pursuant to a congressional request, GAO reviewed the third "Summary Report of Inspector General Activities" by the President's Council on Integrity and Efficiency. The report is intended to highlight the significant impact that the inspectors general (IG), the Council and the administration have had in combating fraud, waste, and mismanagement in Government.

GAO found that the Council's third report was an improvement over its two previous reports. It provided clearer definitions and more explanatory information on the statistics contained in its data tables. However, GAO stated that better disclosure in the areas of budgetary savings, preaward contract audit results, and actual recoveries would improve future Council reports. Specifically, GAO reported that: (1) the approximately $6 billion savings reported by the Council represents management commitments that may result in savings, but not necessarily budgetary savings; (2) Defense Contract Audit Agency (DCAA) preaward audits differ from IG audits and should be reported separately; and (3) management commitments to act on recommendations only partially measure IG and agency effectiveness and do not ensure recovery or other action.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The President's Council on Integrity and Efficiency should clearly state that the savings reported do not necessarily represent budgetary savings.

    Agency Affected: President's Council on Integrity and Efficiency

  2. Status: Closed - Not Implemented

    Comments: The Council has taken the position that, "there are no budgetary savings from auditor recommendations and subsequent actions until Congress adjusts the budget." Since it states that there are no budgetary savings, the recommendation no longer has merit.

    Recommendation: The President's Council on Integrity and Efficiency should report separately the budgetary savings that have resulted from IG recommendations.

    Agency Affected: President's Council on Integrity and Efficiency

  3. Status: Closed - Implemented

    Comments: The Council report for the six-months ended March 31, 1984, separately reported DCAA audit results. Introductory information and examples provided explained the types of cost/findings reported under the DCAA columns.

    Recommendation: The President's Council on Integrity and Efficiency should report separately and fully explain contract audit results.

    Agency Affected: President's Council on Integrity and Efficiency

  4. Status: Closed - Not Implemented

    Comments: The Council has changed its report format and no longer reports Audit Recoveries or the actions of the agencies designated followup officials. This change in format and in the terms used to categorize audit results invalidates the recommendation.

    Recommendation: The President's Council on Integrity and Efficiency should report actual recoveries (collections and offsets against future awards) in the Designated Agency Followup Officials section of its reports.

    Agency Affected: President's Council on Integrity and Efficiency

 

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